Short-Term Stock Screening with RSI, MACD Histogram Contraction, and Market Capitalization

Summary

This short-term stock screen combines an RSI below 65, circulating market capitalization of at least 20 million, and a 15-minute MACD condition described as a shortening green histogram. The article interprets the indicators as a way to identify stocks during a pullback, while the size threshold is intended to exclude smaller companies. Its code reference adds conditions involving negative MACD lines and a short MACD average, along with exclusions for certain listings, suspended stocks, and special-treatment stocks; it also describes sorting by capitalization, profitability measures, and daily price change.

The document provides no backtest or performance data, and its claim that the filter may improve selection is unsupported by reported evidence. It acknowledges that technical conditions change quickly and that the approach neglects company fundamentals. The explanation is also ambiguous: a shortening negative histogram can be interpreted as fading downside momentum, whereas the prose characterizes it as confirming a pullback. The screen's usefulness therefore depends on precise indicator definitions and testing in the intended market and timeframe.

Key ideas

• The screen combines RSI below 65, market capitalization of at least 20 million, and a 15-minute MACD histogram condition.
• The code reference further filters for negative MACD lines and a condition on a short MACD average.
• The article frames the approach as suitable for short-term selection but reports no performance evidence.
• Rapidly changing technical signals and the omission of fundamentals are stated limitations.
• The relationship between a contracting histogram and the described pullback interpretation is unclear.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.